Iran-Pakistan pipeline

We should be careful of imposition of US sanctions as it could be followed by similar treatment by European countries.

The recent agreement between Iran and the Western powers on the status of Tehran’s nuclear programme is indeed a groundbreaking event that may likely have ramifications for the Pakistani economy. In order to take advantage of this and move ahead with the Iran-Pakistan gas pipeline project, Pakistan is considering seeking an undertaking from Iran that the project proceeds would not be used for nuclear proliferation. The Pakistan government’s efforts in this regard are welcome despite the US making it clear that it has not changed its stance on the pipeline project. Indeed, the agreement between Tehran, Washington and Brussels is a temporary one. It does not address several final status questions about Iran’s nuclear capabilities and will not do so for at least another six months. Until that final agreement has been put in place and a good-faith implementation initiated by Iran, it is highly unlikely that the Western powers will relax their sanctions that affect Tehran’s ability to do business with the outside world.

The US has not removed sanctions on companies that seek to do business with or invest in Iran’s oil and gas sector. It is these sanctions that form the primary impediment to the Iran-Pakistan pipeline and the timing for their removal has yet to be even hinted at. Pakistan’s attorney general has suggested that a US-based international law firm should be engaged to evaluate the project before it starts and his suggestion should be followed. We should be careful of the imposition of US sanctions as they could be followed by similar treatment by European countries — a fate we can ill-afford. It is good that the government appears aware of the paradigm-altering consequences of the rapprochement between Washington and Tehran and we are especially glad that it is so enthusiastic about a project that is very openly opposed by Saudi Arabia. The Iran-Pakistan pipeline looks more possible now than in the past. Let us not blow our chance at completing it by being careless about it.

Published in The Express Tribune, December 4^th, 2013.

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